Judicial Foreclosure

Although each judicial foreclosure process will vary depending on the state, there are generally 10 steps involved:

1. The plaintiff's (lender) attorney sends a Fair Debt Collection Practices Act (FDCPA) letter or demand letter to the borrower(s).
   
   
2. A Complaint or Petition is filed by the attorney to initiate the foreclosure actions.
   
   
3. The Compliant and Summons is served on the defendants.
   
   
4. The defendants answer the Complaint.
   
   
5. The plaintiff's attorney will file either a Motion for Summary Judgment or a Motion for Default Judgment.
   
   
6. A hearing is held on the Motion, wherein a judgment is rendered and an Order is issued by the Court.
   
   
7. Publication of the Foreclosure sale is accomplished.
   
   
8. The Foreclosure sale is held.
   
   
9. The Foreclosure sale is confirmed by the Court.
   
   
10. The deed is recorded.

Non - Judicial Foreclosure

Unlike a judicial foreclosure, a non-judicial foreclosure does not involve a lawsuit. Instead a "power of sale" is granted to the trustee in the Deed of Trust. The power of sale allows the trustee to by-pass the judicial process and sell the property directly on behalf of the beneficiary (i.e., lender). There are generally 6 steps involved:

1. Trustee sends FDCPA letter.
2. Substitute of Trustee (SOT) is recorded.
3. Notice of the Sale is sent by certified mail to the borrower(s).
4. Publication of the Sale.
5. Trustee Sale
6. Recordation of Trustee Deed.

 

Bankruptcy

A common legal action associated with the foreclosure process is for the debtor to file for bankruptcy intended to stay a judicial or non-judicial proceeding. Types of bankruptcy cases handled by FMC include Chapter 7, 11, and 13. We will file answers in court when needed. The steps required to respond to a bankruptcy filing are:

1. File Proof of Claim.
2. File Motion for Relief of Stay (MFR).

 

Contested Actions/Litigation Management

In situations where the debtor disputes a foreclosure claim, FMC will manage the process to determine the legitimacy of the dispute.

3rd Party Representation

As part of FMC’s approach to defending a client’s interest, we may encounter a third party lien holder lawsuit that could potentially jeopardize the client’s interest in the property. Upon such notification, our attorneys will file an answer in order to protect the clients’ interest and assert the expectation for payment regardless of other claims.

 

Assignment Preparation/Release

In an effort to secure our clients property and ensure that it is assigned to our clients, we research the chain of title. The notorious problems of “no assignment” or “no release” recorded occur frequently in title cases, requiring our attorneys to resolve these issues. We identify missing links and obtain necessary assignments to ensure proper vesting at the end of the foreclosure process.

Evictions

The final step in the foreclosure process involves taking possession of the property through the eviction procedure. Some of these actions are:

1. Filing the eviction proceedings according to state and county requirements.
   
   
2. Delivering a certified Letter.
   
   
3. Setting a lock-out date with local law enforcement
   
   
4. Arranging publication of eviction.
   
   
5. Communicating with debtors if necessary and relieving lenders of the burdensome task of diffusing a potentially volatile situation.
   
   
6. Coordinating activities of servicing agents who handle logistics of securing the property.

Foreclosure Title Work

FMC services clients with foreclosure title work as dictated by state legal requirements. We can facilitate the process with any level of product, including limited title, title commitments, title insurance, trustee sale guaranty, and specialty foreclosure reports.

Replevin

Replevins, writ of possession and sequestration actions involve personal (non-real estate) property. While each state varies greatly in terms of the legal process and requirements, the items typically involved are: boats, RVs, mobile homes and other automobiles.

Money Judgments

In the case of money judgments, FMC initiates and manages the process of taking personal action against an individual as opposed to the property itself.

Delinquent Tax Resolution

Taxes not paid by the debtor create a unique challenge for the lender. In many states, foreclosures cannot take place unless taxes are paid in full. It is not uncommon for a lender to lose property due to delinquent taxes. FMC stays apprised of various state and county redemption periods, tax sale announcements and other relevant filings.

Surplus Funds from Foreclosure Sale

This occurs when our client is not the Senior Lien holder on a property. If at the foreclosure sale the property is sold to a 3 rd party the money is used to pay off the senior mortgage the left over (surplus funds) is sent on to the junior lien holders. FMC helps to coordinate the acquisition of these funds.

Senior Sale

When FMC’s client is not the senior lien holder on title and that senior lien holder has decided to foreclose FMC will file an answer with the court to protect our client’s interest.

Surplus Funds from Tax Sale

A property is up for tax sale FMC will file an application for the surplus funds with the court. Just as with the Foreclosure Sale, FMC will coordinate with the acquisition of the excess funds.

Manufacturing Housing Title Resolution

FMC will coordinate confirmation of collateral location and current lien status as well as transfer the Certificate of Title to client, they will also work to ensure the cancellation of title to real estate.

Real Estate Title Clearance

FMC confirms lien position of the client and will obtain lien releases or current payoff amounts and can draft, execute, and record the lien holder’s transfer document.